Spring Airlines, China's only budget carrier, has been granted a license to operate in Japan, China Business News reported on Thursday.

The company's subsidiary Spring Airlines Japan is set to intensify competition among Japanese budget airlines. Three Japanese low-cost carriers have been established since 2012.

Since making its first international flight from its home city of Shanghai to Ibaraki airport, about 80 km northeast of Tokyo, in July 2010, Spring Airlines has been exploring overseas markets.

Budget carriers have taken up to 26 percent of the global aviation market, with their market share in Europe reaching 35 percent.

Shrinking profit margins have forced more airlines to launch low-cost flights.